PRINCIPLE OF ECONOMICS Renato A Adriano III

PRELIM 2019-2020

GUIDELINES: A “No Permit No Exam Policy” shall be strictly implemented. No student is

allowed to go out of the classroom. Examinee is advised to approach the proctor silently.
Do not start while you are not told to do so. All answers must be written legibly. If
finished pass your test paper with the test booklet to the proctor and silently go out of
the classroom. You will receive back your test booklet a week after the scheduled
examination.

PRELIMINARIES: On this term the students will be assessed on what they have
learned about the Concepts and Principle of Economics, The Economic Goals,
and Elasticity of Demand and Supply.

NAME:________________________________________Date:____________________

PART I MULTIPLE CHOICE

Encircle the correct answer

1. Is an economic principle referring to a consumer's desire to purchase

goods and services and willingness to pay a price for a specific
good or service. 

a. demand
b. supply
c. production
d. both a and b

2. Which term describes the way a society organizes the production,

distribution, and consumption of goods and services to meet people's
needs and wants?
a. Supply and Demand
b. Economic System
c. Mixed System
d. Capitalism

3. The two important factors in the study of Economics

a. Scarcity and Unlimited Wants
b. Capitalism and communism
c. Demand and Production
d. None of the above
4. What scarcity means
a. Unlimited resources
b. Abundant supply
c. Both a and b
d. None of the Above
5. Who is the writer that defines Economics as “the study of production
distribution selling use of goods and services “
a. Collins
b. Mac Collins
 c. Parkin and Bades
d. None of the above

6. Is a process of combining various material inputs and immaterial inputs

(plans, know-how) in order to make something for consumption (the output)

a. Demand
b. supply
c. production
d. both a and b

7. Are desires that can be satisfied by consuming a good, service, or

leisure activity

a. Demand
b. supply
c. production
d. wants

8. The branch of knowledge concerned with the production, consumption, and

transfer of wealth.

a. Economics
b. Social Science
c. Politics
d. supply and demand

9. This refers that people never get enough, that there is always
something else that they would like to have. When combined with limited
resources.

a. unlimited wants
b. wants
c. supply
d. goods

10. It asserts that there is scarcity, or that the finite resources

available are insufficient to satisfy all human wants and needs

a.Economic Problems

b.Economic Goals

c.Communism

e. both b and c

PART II MATCHING TYPE

11) Microeconomics a. is that branch of economics that deals

with the economic behavior of the whole
economy
12) Demand elasticity b. is that branch of economics that deals
with the economic behaviour of individual
units such as consumers
13) Consumer c. refers to the reaction or response of the
buyers to changes in price of goods and
services
14) Macroeconomics d. a branch of Social science that deals
about the distribution of good and
services under the condition of Scarcity
 15) Economics e. refers to a person who buys good and
service
PART III IDENTIFICATION
Positive Economics OR Normative Economics

Write PE if the statement pertains to Positive Economics and NE if the

statement pertains to Normative Economics

_________16. It avoids value judgments, tries to establish scientific

statements about economic behaviour and deals with what the economy is
actually like

_________17. Incorporates value judgment about economic about what the

economy should be like or what particular policy actions should be like or
what particular policy actions should be recommended to achieve a desirable
goal.

_________18. It looks at the desirability of certain aspects of the economy

_________19. Embodies subjective feelings about what ought to be

_________20. Focuses on facts and cause-and-effect relationship

MACROECONOMICS AND MICROECONOMICS

Write MAC if the statement pertains to Macroeconomics and MIC if the

statement pertains to Microeconomics

__________21. Examines either the economy as a whole or its basic

subdivisions or aggregates, such as the government, household, and business
sectors.

__________22. Aggregate is a collection of specific economic units treated

as if they were one unit

__________23. It speaks of such economic measure as total output, total

employment, total income, aggregate expenditure, and the general level of
prices in analysing various economic problems

__________24.It examines the beach, not the sand, rocks, shells

__________25. Look at specific economic units

PART IV TRUE OR FALSE

Write T if the statement is TRUE and write F if the statement is FALSE

__________ 26. Economics is the study of how societies use scarce resources
to produce valuable commodities and distribute them among different people.
__________ 27. The word “economics” has been derived from the Greek word
oikonomia. It means household management

___________ 28. An institution is a set of rules of conduct, established

ways of thinking, or ways of doing things.
___________ 29. The purpose of an economic system is to solve the basic
economic problems. The main goal of economic system is high standard of
living for all its citizens.
___________ 30. Economics deals with the problem of scarcity
PART V ENUMERATION

A. Types of demand elasticity to price changes of goods and services?

31.
32.
33.

B. What are the two forms of Capitalism?

34.

35.

C. Give at least 5 Economic Goals

36.

37.

38.

39.

40.

PART VI PROBLEM SOLVING

41-44 What is the demand Elasticity given the following

Original Quantity Demand = 10,000kg

Original Price = Php 5.00 kilo

New Quantity Demanded = 16,000kg

New Price = Php 4.00 per kilo

PART VII IDENTIFICATION

McConnell and Bruce

Samuelson and Nordhouse

Parkins and Bades

Economic growth

Full employment

Economic efficiency

Price-level stability

Economic freedom

Equitable distribution of income

Economic security

Balance of trade
 To 45._________ and 46._______________ Economics is a social science
concerned with using scarce source to obtain the maximum satisfaction of
the unlimited material wants of society.

47._____________ and 48.______________ refer as the study of how

people use their limited resources to obtain to try to satisfy unlimited
wants.

49._____________ and 50.______________the study of how societies use

scarce resource to produce valuable commodities and distribute them among
different people.

51.________________ means produce more and better goods and services,

or, more simply, develop a higher standard of living
52.________________ means provide suitable jobs for all citizens who
are willing and able to work
53.________________ to achieve the maximum fulfillment of wants using
the available productive resources
54.________________ avoid large upswings and downswings in the general
price level; that is, avoid inflation and deflation
55.________________ guarantees that businesses, workers, and consumers
have a high degree of freedom in their economic activities
56.________________ ensure that no group of citizens faces poverty
while most others enjoy abundance

57.________________ provide for those who are chronically ill,

disabled, laid off, aged, or otherwise unable to earn minimal levels
of income
58.________________ seek a reasonable overall balance with the rest of
the world in international trade and financial transactions.

59-60 Define Economics:

***Nothing follows***

Prepared by: Checked by: Verified by: Approved by:

Renato A. Adriano III Renato A. Adriano III Prof. Jose Van B. Galvo Carmelo D. Carcido
Teacher Academic Coordinator School Director Headmaster